Bitcoin Price Watch: BTC/USD Recovery Facing Crucial Hurdle

Key Points

Bitcoin price nosedived below $4,000 and $3,800 against the US Dollar. BTC/USD is currently recovering, but the $4,000 barrier is now acting as a resistance.

Bitcoin Price Analysis

During the past three days, we saw a nasty decline below $4,000 in bitcoin price against the US Dollar. The BTC/USD pair even broke the $3,800 and $3,600 support levels to post a new multi month low. The price even spiked below the $3,500 level and settled well below the 100 hourly simple moving average. A low was formed at $3,449 and later the price started an upside correction.

It moved above the $3,600 and $3,800 resistance levels. More importantly, there was a break above the 50% Fib retracement level of the recent decline from the $4,340 high to $3,449 low. However, the upside move was capped by the $4,080-4,100 zone, which was a support earlier. Moreover, there is a major bearish trend line in place with resistance at $4,080 on the hourly chart of the BTC/USD pair. The pair was also rejected near the 76.4% Fib retracement level of the recent decline from the $4,340 high to $3,449 low. Clearly, the price is facing a solid resistance near the $4,080 level and the 100 hourly SMA.

Looking at the chart, bitcoin price must break the $4,000 and $4,080 resistance to climb higher towards $4,500. If buyers fail to gain pace above $4,080 and the 100 hourly SMA, there could be a sharp decline.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is currently well above the 50 level.

Major Support Level – $3,800

Major Resistance Level – $4,080